Mixed-Use Building with Four
For Sale
$399,900
920 Romayne Ave, Racine, WI 53402
Two-story property combines a ground-floor commercial unit with residential apartments above.
Property Size3,215 SF
Price / SF$124.39
Days on Market110
Property Features for 920 Romayne Ave
General Information
Standard status
Active
Size
3,215 SF
Additional Details
Multifamily Units
4
Taxes and HOA fees
Annual Taxes
$5,470
Building Details
Year Built
1926
Buildings
1
Stories
2
Tenancy
Multi
Listing Agency:
Smart Asset Realty Inc
(262) 232-8738
Listed By:
Adam McCarthy · License #5831990
(262) 232-8738
Source:
Exprealty
Added: May 13
Changed: Aug 29
Last Checked: Aug 29 at 2:38PM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Smart Asset Realty Inc
Investment Insights
Based on property information with market context.
This two-story mixed-use building contains 3,215 square feet and was built in 1926. The ground level includes a commercial unit formerly used as a salon, while four residential apartments occupy the upper portion of the building. The five-unit configuration brings commercial and residential components together within one property, offering flexibility for an owner-user or an investor. The existing layout supports separate commercial and residential occupancy, with the salon-oriented space providing an established starting point for continued commercial use. Located at 920-924 Romayne Ave in Racine, Wisconsin, the property presents a compact combination of storefront and apartment space in a single building.
Key Highlights
- Five‑unit mixed‑use property with one commercial unit and four residential apartments
- 3,215 sq ft building with a two‑story layout
- Ground‑floor commercial unit formerly used as a salon
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$33,275
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
8.32%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$665,500
$665.5K
Cap Rate 7%
$475,357
$475.4K
Cap Rate 9%
$369,722
$369.7K
Market Conditions
NOI Build-Up for 3,215 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$57.9K $18.00/SF
− Vacancy
−$4.6K −$1.44/SF
EGI
$53.2K $16.56/SF
− OpEx
−$20.0K −$6.21/SF
NOI
$33.3K $10.35/SF
Area
Racine County, WI
Vacancy
8.00%
Lease Rate
$18.00 /SF/Yr
Expense Ratio
37.50%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$665,500
Cap Rate 7%
$475,357
Cap Rate 9%
$369,722
Alternative Uses
Best Use
Mixed Use
$475.4K
$415.9K – $554.6K
NOI $33,275 @ 7.0% cap · market cap 8.32%
Second Best
Retail
$467.3K
$408.9K – $545.2K
NOI $32,711 @ 7.0% cap · market cap 8.18%
Theoretical Best
Office A
$773.1K
$676.5K – $902.0K
NOI $54,120 @ 7.0% cap · market cap 13.53%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
4
Residential units
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
477
Businesses Nearby
Explore this area
Business Placement
Demographics for 53402, WI
33,621
Population
15,660
Households
2.1
Avg Household Size
41
Median Age
33%
College-Educated
92%
High-School Grad
20.0 sq mi
ZIP Area
1,681
Density / Sq Mi
$74,125
Median Household Income
$47,838
Median Earnings
$1,049
Median Rent
$224,200
Median Home Value
Market
Vacancy Rate% for Multifamily in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Two-story property combines a ground-floor commercial unit with residential apartments above.
Where is this mixed-use property located?
The property is located at 920 Romayne Ave Racine, WI.
What is the asking price?
The asking price for this property is $399,900.
What are key features of this property?
This property features: Five‑unit mixed‑use property with one commercial unit and four residential apartments; 3,215 sq ft building with a two‑story layout; Ground‑floor commercial unit formerly used as a salon
